Social security effects on income distribution: a counterfactual analysis for Brazil

Rodrigo de Moura, Jaime de Jesus Filho, Paulo S�rgio Braga Tafner and Ligia Helena da Cruz Ourives

Applied Economics Letters, 2013, vol. 20, issue 7, 631-637

Abstract: One of the reasons for the existence of social security systems is that they function as an income redistribution mechanism (Diamond, 1977). Nevertheless, there is no obvious consensus about this social security property. We test it to the Brazilian case and try to answer an additional question: is the trend of social security systems increasingly progressive or regressive? We conclude that the changes in Brazilian Social Security legislation reduced inequality between 1987 and 1996, but only for the elderly. For the other age groups, there is a stable trend. Results for the period between 1996 and 2006 reveal that the Brazilian system is neutral for all cohorts.

Date: 2013
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DOI: 10.1080/13504851.2012.725922

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